Blackstone, the New York-based investment firm, tried two years ago to find a buyer at USD4 billion or more. Prices for Las Vegas casinos have continued to rise despite the pandemic as real estate investment trusts purchase properties and split costs with management firms.
Casino companies have been shedding real estate, often holding on to the management of the properties. Apollo is buying the Venetian resort complex in Las Vegas for USD6.25 billion in a partnership with Vici Properties Inc., a REIT (Real Estate Investment Trust).
MGM has sold casino properties while continuing to manage them. It agreed in July to sell two Las Vegas hotels at CityCenter to Blackstone for USD3.89 billion. The Cosmopolitan sits between CityCenter and the Blackstone-owned Bellagio casino.
The Cosmopolitan, which opened in 2010, ran into financial trouble during its construction in the midst of the Great Recession. Owner Deutsche Bank AG, which built the property for USD3.9 billion, sold it to Blackstone in 2014 for USD1.73 billion.
Source: Bloomberg
